Managing Changeand Transition

Processes

Chuck KalnbachDept. of Management

LCB

“Nothing is harder to do than to initiate a new order of things.”

“Nothing is harder to do than to initiate a new order of things.”

The PrinceNicolo Machiavelli

1513

If it’s so hard to change something or someone, then why bother?

The only constant is changeHeraclitus (535 BC-475 BC)

Ultimately, all change efforts boil down to thesame mission:

Can you get people to enthusiastically start behaving in a new way as soon as possible?

The Change Management Dip

Perf

orm

ance

Time

The change

Let’s look at the speed of change….

“Everything that can be invented…..

…..has been invented.” Charles Duell, Commissioner of the US Patent Office, 1899

700

600

500

400

300

200

100

0

1940 20201950 1960 1970 1980 1990 2000 2010

Total patent applications annually (thousands)

60 MB hard drive in 1988…

…..for $750that was $12.50/mb

7000

6000

5000

4000

3000

2000

1000

0

20201960 1970 1980 1990 2000 2010

Growth in Hard Drive storage (GB)

Paul Otellini, former CEO of Intel in describing the 32nm chip which was 5000X faster, and its transistors were 100,000X cheaper, than the 4004 processors the industry began with.

“With all respect to our friends in the auto industry, if their products had produced the same kind of innovation…

…cars today would go 470,000 mph, they would get 100,000 miles per gallon of gas, and

they would cost $0.03.”

Pace of Change

Slower Faster

BusinessGovernment

Glacial

Academic

Anticipating Change

Change in a our world means that you must deal with:

a chaotic and inconsistent environment

changing stakeholder requirements

new (and old) regulations

constant innovation

help implement change programs (knowing that 70% will fail)

…as an organizational leader, you must

When the organization CHANGES to meet a new requirement, threat, or respond to an environmental

reality, etc.,

You as an organizational leader are responsible for the TRANSITION PROCESS of the folks around you

as they progress to implement the change.

However...

..if change happens too fast, chaos ensues. If too little change happens too slowly, it results in organizational inertia. Both extremes can lead to organizational underperformance.

Huy, Q. N., In praise of middle managers

Change in Organizations

When organizations are undergoing significant change, they can talk out both sides of their mouth:

Innovate--but avoid mistakes

Think long term--but improve productivity now

Reduce costs--but increase morale

Downsize--but improve teamwork

Empower staffs--but be sure they follow the rules

Embrace the new--but honor the past

However, what happens when you change to “and” instead of “but”?

“Reduce costs AND increase morale AND you must achieve both to reach your goals.”

This is the CHANGE and TRANSITION PROCESSES you have to manage.

Change in Organizations

Change creates conflict...

...between the business side of an organization and the human side.

Organizational changes

Business Side includes the NEED for change and its impacts on:

CulturePoliciesProceduresBudgetsOrganizational structuresWork processesWork flows

Individual changes

Human side includes RECOGNIZING the organizational need for change and its impacts on:

Set patterns of behaviorDefined relationships with othersWork procedures and job skills

“Change would be easy if it weren’t for all the people”

Resistance to change

It is much easier to agree that problems exist, than agree on what should be done about them.

Everyone has to be dissatisfied “enough” with the current situation to offer little or no resistance.

Number of people

Urbanites Stragglers Settlers Pioneers Explorers

Those vigorously

resisting the change

Avidly promoting the change

Few

Many

Continuum of resistance to changeScholtes, pg. 221

Number of people

Urbanites Stragglers Settlers Pioneers Explorers

Those vigorously

resisting the change

Avidly promoting the change

Few

Many

Continuum of resistance to change

Number of people

Urbanites Stragglers Settlers Pioneers Explorers

Those vigorously

resisting the change

Avidly promoting the change

Few

Many

Continuum of resistance to change

So how do we implement change in the face of resistance?

So how do we implement change in the face of resistance?

3 Methods:Coercion

RationalizationSocialization

There’s the Coercion (NIKE) Method

There’s the Rationalization Method

Here’s WHY you’ll JUST DO IT

The Rationalization Method

Here’s WHY you’ll JUST DO IT

The focus is solely on the logic and reasoning for the change (no emotion)

When the organization CHANGES to meet a new requirement, threat, etc.

You as an organizational leader are responsible for the TRANSITION PROCESS of the folks around you

as they progress to implement the change.

Change creates conflict...

...between the business side of an organization and the human side

“Just do it”and the rationalization method focus solely on the business side

Failure to consider, or an inability to deal with, the human elements leads to an unsuccessful implementation

There’s the Socialization Method

Change is a collectively SOCIAL and EMOTIONAL transformation.

Starts with a rational approach (focus on the logic and reasoning for the change), but then incorporates aspects of

socialization (including others in the process)

The Socialization Method of implementing change

Where on the continuum are your managers and the more influential people?

French and Raven’s Power Bases

Formal Informal

Legitimate Referent

Reward Expert

Coercive Informational

The Socialization Method of implementing change

Moved and Shaken

Moderately Influential

Movers and Shakers

Formal

Informal

Those in the lower ranks of the hierarchy

Those in the lower ranks of the hierarchy

Those in the middle ranks

No position of importance yet

moderate influence

Those in the top levels of the hierarchy

Those without a high level but with

great influence

One’s influence in an organizationScholtes, pg. 225

The Socialization Method of implementing change requires identifying those who have informal power.

How do you do this?

The Socialization Method of implementing change requires identifying those who have informal power.

Clique

Star

Isolate

The Socialization Method of implementing change requires identifying those who have informal power…

and then following a process that helps your chances of succeeding.

Kotter’s 8-step Change process

1. Establishing a SENSE of URGENCY (crises or need).

2. Forming a powerful GUIDING COALITION (encouraging them to work as a team)

3. Creating a VISION for the change (what is the goal?)

4. COMMUNICATING the vision and TEACHING new behaviors

Kotter’s 8-step Change process

5. EMPOWERING and ENABLING others to act on the vision.

6. Planning for and CREATING short-term wins. Recognize and reward those involved

7. Consolidating improvements and PRODUCING still more change (evaluating how the change is working)

8. INSTITUTIONALIZING the new approaches and relating it to organizational success

Kotter’s 8-step Change process

...helps you focus less on analysis (only Step 1 creates the need).

Kotter says “people change what they do less because they are given analysis that shifts their thinking than because they are shown a truth that influences their feelings.”

Kotter’s 8-step Change process

…if you think you are communicating enough, you probably aren’t. Over communicate by a factor of 10 and get rid of the jargon.

Bridges’ Transition modelTime

Bridges’ steps in the “ending/losing stage”

Identify who is losing what

Accept the reality and importance of the subjective losers (don’t argue)

Don’t be surprised by overreaction

Acknowledge the losses openly and sympathetically

Expect and Accept the signs of grieving (DABDA)

Compensate for the losses

Bridges’ steps in the “ending/losing stage”

Give people information and do it again and again and again

Define what is over and what isn’t (be specific)

Treat the past with respect

Let people take a piece of the old way with them

Show how endings ensure the continuity of what really matters (meeting stakeholder requirements)

The Socialization Method of implementing change

Change is a collectively SOCIAL and EMOTIONAL transformation.

Starts with a rational approach (focus on the logic and reasoning for the change), but then incorporates aspects

of socialization (including others in the process) and managing the emotions of those involved.

The Socialization Method and Kotter’s First four steps

Your organization has to reduce employees and reorganize (become more centralized) because of

budgetary constraints.

The Socialization Method and Kotter’s First four steps

Starting with a rational approach (focus on the logic and reasoning for the change), how do you create a

sense of urgency? What will you do here? What is/are the message(s) that you need to communicate?

Incorporate aspects of socialization (including others in the process) and manage the emotions of those

involved. Who is on your guiding coalition? Who are your formal and informal leaders? How do you prepare

them for the process?

The Socialization Method and Kotter’s First four steps

What’s your end goal (vision) and what do you need to accomplish and for whom?

How will you communicate? What will you communicate? What channels? With whom? How

often?

The Socialization Method and Kotter’s First four steps

Ultimately, how do you manage the transitions (“ending stage”) from Bridges during this initial process?

The Socialization Method of implementing change

Change is a collectively SOCIAL and EMOTIONAL transformation.

Starts with a rational approach (focus on the logic and reasoning for the change), but then incorporates aspects

of socialization (including others in the process) and managing the emotions of those involved.

“Nothing is harder to do than to initiate a new order of things.”

The PrinceNicolo Machiavelli

1513

“You make the change at the University.”

Pres. Mike Schill

What QUESTIONS or CONCERNS do you have?